When to Bring in a Lawyer: A Business Owner’s Journey

When Emily decided to start her bakery, she felt ready for anything. She’d perfected her recipes, found the perfect location, and even designed her logo. But one thing she didn’t realize was just how often she’d need legal advice along the way. Like many small business owners, Emily assumed lawyers were only for big companies or major crises. It wasn’t long before she learned that having the right legal support at key moments was the difference between smooth sailing and major headaches.

The First Step: Starting Out Right

Emily’s first lesson came when she filed her LLC paperwork. It seemed simple at first—just fill out some forms, pay a fee, and voilà! But a friend recommended she consult a lawyer, and Emily reluctantly agreed. That lawyer helped her choose an LLC over a sole proprietorship, explaining how it would protect her personal assets if anything went wrong. They also drafted an operating agreement—a document Emily hadn’t even heard of but later found invaluable when bringing on a partner to expand the business.

Looking back, Emily realized this first step wasn’t just about paperwork—it was about building a solid foundation for her dream.

The Fine Print: Contracts and Agreements

As her bakery grew, Emily found herself juggling suppliers, employees, and customers. One day, she was thrilled to land a lucrative catering contract with a local hotel, but when she skimmed the agreement, something felt off. She reached out to her lawyer, who spotted terms that could have left her bakery liable for late deliveries—even if the hotel caused the delays.

Her lawyer helped her negotiate fairer terms, saving her from what could have been a costly mistake. From then on, Emily always ran contracts by her lawyer first, knowing it was better to be safe than sorry.

Building a Team: Navigating Employment Laws

Soon, Emily needed help to keep up with demand. She started hiring employees but quickly realized there was more to it than just offering a job. Her lawyer guided her through creating clear employment agreements and setting up policies to handle things like overtime and paid leave.

One of Emily’s biggest challenges came when a new hire claimed she was owed more hours than she worked. Thanks to her lawyer’s earlier advice, Emily had everything documented, avoiding a messy dispute.

Growing Pains: Expansion and Change

With her bakery thriving, Emily decided to open a second location. This time, she felt prepared—until the landlord of her new lease slipped in a clause about steep penalties for breaking the lease early. Her lawyer explained the risks and helped negotiate terms that gave Emily more flexibility.

When Emily also considered selling her custom cake recipes to another bakery, her lawyer stepped in to draft a licensing agreement that protected her intellectual property while still allowing her to profit.

Bumps in the Road: Facing Disputes

Not every challenge was easy to anticipate. When a customer claimed they got sick from one of her cakes, Emily was devastated—and scared. Her lawyer helped her work through the situation calmly, proving that the cake wasn’t the source of the issue. That moment reinforced the importance of having someone in her corner who could navigate the tricky world of liability.

Looking Ahead: Planning for the Future

After years of hard work, Emily began thinking about what would happen to her bakery if she ever stepped away. Could she pass it down to her kids? Sell it to a trusted employee? With her lawyer’s help, she created a business succession plan that gave her peace of mind. It wasn’t something she needed immediately, but it felt good knowing she had a plan in place.

What Emily Learned

Emily’s journey taught her that lawyers aren’t just for lawsuits—they’re allies in building and protecting your business. From the first step to planning for the future, having legal support made all the difference.

If you’re a small business owner like Emily, consider the legal milestones in your journey. Are you starting out? Negotiating a big deal? Expanding your team or planning for the future? Wherever you are, don’t wait for a problem to arise. Reach out, and let’s ensure your business is set up for success—just like Emily’s bakery.

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This article is a service of Dolev Law, a Personal Family Lawyer® Firm. We don’t just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Life & Legacy Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Life & Legacy Planning Session™.

Disclaimer

This blog is intended for informational purposes only and does not constitute legal advice. The story of "Emily" is fictional and used solely for illustrative purposes to demonstrate common situations where legal guidance may be beneficial for small business owners.

For personalized legal advice tailored to your specific circumstances, please consult with an attorney. Laws vary by jurisdiction, and the examples provided may not apply to your situation. Reading this blog does not establish an attorney-client relationship.